Similarities Between The 1930s And 2020s

The Beginning of a Second Great Depression? Similarities Between the 1930s and 2020s Economy The economy in the United States during both the 1930s and the 2020s share similarities when compared, such as the S&P 500, CPI, unemployment rate, industrial production index, and the real GNP/GDP. By comparing the similarities between these two economies from different time periods, as well as what has worked in the past, society can develop better ways to deal with economic recessions and depressions. As a result, this will help to expand upon and improve policies that have worked in the past, as well as show the beginning signs of a recession. By recognizing the signs of a recession, corrective measures can be taken sooner to prevent the economy

Observations of data collected from both the Great Depression and the 2020 recession, especially the data collected from the S&P 500 and the industrial production index, show close or equal data points between the two time periods. For instance, when comparing the S&P 500 for both the 1930s and 2020, the declines taken economically during 2020, “rivaled or exceeded the initial declines of the Great Depression.” According to David C. Wheelock, senior vice president and special policy advisor to the president at the Federal Reserve Bank of St. Louis (Para 8). Additionally, the collective declines in industrial production during the early months of 2020 were very similar to the early months of the Great Depression. In order to continue to prevent and deal with future economic depressions and recessions, look at the policies created during the 1930s and the Great Depression, and how they benefitted the United States